{"id":"F2022L01454","name":"Competition and Consumer (Industry Codes—Franchising) (Additional Information Required by the Secretary) Determination 2022","slug":"competition-and-consumer-industry-codes-franchising-additional-information-required-by-the-secretary","collection":"legislative_instrument","jurisdiction":"commonwealth","status":"in_force","isInForce":true,"actNumber":null,"makingDate":null,"administeringDepartment":null,"currentVersion":{"id":102834,"registerId":"commonwealth-F2022L01454-current","compilationNumber":null,"startDate":"2026-04-03","status":"InForce","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"Part 1","sectionType":"part","heading":"Preliminary","content":"## Part 1—Preliminary","sortOrder":0},{"sectionNumber":"1","sectionType":"section","heading":"Name","content":"#### 1 Name\n\n  This instrument is the Competition and Consumer (Industry Codes—Franchising) (Additional Information Required by the Secretary) Determination 2022.","sortOrder":1},{"sectionNumber":"3","sectionType":"section","heading":"Authority","content":"#### 3 Authority\n\n  This instrument is made under the Competition and Consumer (Industry Codes—Franchising) Regulations 2024.","sortOrder":2},{"sectionNumber":"4","sectionType":"section","heading":"Definitions","content":"#### 4 Definitions\n\nNote: Expressions have the same meaning in this instrument as in the Competition and Consumer (Industry Codes—Franchising) Regulations 2024 as in force from time to time—see paragraph 13(1)(b) of the Legislation Act 2003.\n\n  In this instrument:\n\n> Franchising Regulations means the Competition and Consumer (Industry Codes—Franchising) Regulations 2024.","sortOrder":3},{"sectionNumber":"Part 2","sectionType":"part","heading":"Additional information to be provided to the Secretary","content":"## Part 2—Additional information to be provided to the Secretary","sortOrder":4},{"sectionNumber":"6","sectionType":"section","heading":"Additional information required to be provided in relation to franchisors that give a disclosure document to a prospective franchisee","content":"#### 6 Additional information required to be provided in relation to franchisors that give a disclosure document to a prospective franchisee\n\n  (1) Under subsection 92(4) of the Franchising Regulations, each franchisor to which section 92 of the Franchising Regulations applies is determined as needing to provide the Secretary with the information covered by section 7 in relation to each disclosure document created by the franchisor.\n  (2) However, subsection (1) does not apply to a disclosure document if:\n    (a) the disclosure document relates to a franchise where the franchisor has entered into less than 2 franchise agreements; and\n    (b) the disclosure document relates to a franchise where the franchisor does not intend, or if the franchisor is a company, its directors do not intend, to enter into franchise agreement.","sortOrder":5},{"sectionNumber":"7","sectionType":"section","heading":"Details of the additional information to be provided","content":"#### 7 Details of the additional information to be provided\n\n  (1) All of the information specified by subsection (2) is covered by this section, unless the information is:\n    (a) personal information that relates to an individual other than a franchisor; or\n    (b) information that relates to a particular franchisee of a franchisor; or\n    (c) information that relates to a particular site being occupied by a franchisee of a franchisor.\n  (2) The following information is specified:\n    (a) the number of years that the franchise or franchise system has operated in Australia;\n    (aa) whether the franchisor, an associate of the franchisor, or a director of the franchisor or the associate, has been:\n    (i) in the last 10 years—convicted of a serious offence (or equivalent offence outside Australia); or\n    (ii) in the last 5 years—subject to final judgment in civil proceedings for a matter mentioned in item 4(1) of Schedule 1 to the Franchising Regulations; or\n    (iii) bankrupt, insolvent under administration or a Chapter 5 body corporate (within the meaning of the Corporations Act) in Australia or elsewhere.\n\n> Note: For subparagraph (ii), the matters mentioned in item 4(1) of Schedule 1 to the Franchising Regulations include the following:\n\n    (a) breach of a franchise agreement;\n    (b) contravention of the Act or the Corporations Act;\n    (c) unconscionable conduct, misconduct or an offence of dishonesty;\n    (d) certain contraventions of workplace relations laws, other than unfair dismissal of an employee.\n    (b) the number of existing franchised businesses and franchisees, and businesses owned or operated by the franchisor or an associate of the franchisor in Australia that are substantially the same as the franchised business;\n    (c) each State or Territory in which a business or franchisee covered by paragraph (2)(b) operates;\n    (d) in relation to a franchisor’s requirements for the supply of goods or services to a franchisee—whether there are restrictions on the acquisition of goods or services by the franchisee from other sources;\n    (e) if the franchisor requires payment before a franchise agreement is entered into—why the money is required, how the money is to be applied, who will hold the money, and the conditions under which a payment will be refunded;\n    (f) details of the costs payable by a franchisee to start operating the franchised business;\n    Example: Details of costs may include upper and lower limits of potential costs, a description of potential costs or both).\n    (g) details of payments payable by a franchisee to the franchisor, or an associate of the franchisor, during the term of the franchise agreement;\n    Example: Details of payments may include upper and lower limits of potential payments, a description of potential payments or both).\n    (h) details of payments payable by a franchisee to a person other than the franchisor or an associate of the franchisor;\n    Example: Details of payments may include upper and lower limits of potential payments, a description of potential payments or both).\n    (i) whether the franchise agreement may be varied, unilaterally, by the franchisor;\n    (ia) whether the franchise agreement provides for arbitration of disputes in a manner consistent with Subdivision C of Division 2 of Part 5 of Chapter 2 of the Franchising Regulations;\n    (j) the term of the franchise agreement;\n    (k) whether a franchisee has an option to renew the franchise agreement;\n    (l) whether a franchisee has any rights relating to any goodwill generated by the franchisee;\n    (m) whether the franchise agreement includes a restraint of trade or similar clause;\n\n> Note: The information mentioned in paragraphs (a) to (m) relates to certain items in Schedule 1 to the Franchising Regulations (for example, paragraph (i) relates to item 17 of Schedule 1 to the Franchising Regulations).","sortOrder":6}],"analysis":{"flash_summary_failed":{"failed":true,"reason":"Unauthenticated. Configure AI_GATEWAY_API_KEY or use a provider module. Learn more: https://ai-sdk.dev/unauthenticated-ai-gateway","source":"analysis-cron"},"kimi_summary":{"content_quality":"ok","complexity_score":4,"scope_assessment":{"changed":false,"description":"This instrument appears tightly scoped to its original purpose: specifying additional information requirements for the Secretary's register. It does not expand beyond the administrative data collection function established by the parent Regulations."},"complexity_factors":["Heavy reliance on external definitions—expressions take meaning from the Franchising Regulations 2024, requiring cross-referencing","Nested conditional logic in section 6: general rule → exception (subsection 2) → two cumulative conditions (paragraphs a and b)","Section 7 contains a broad exclusion clause (subsection 1) with three alternative grounds (paragraphs a, b, c) before listing 13 specific information categories","Cross-references to Schedule 1 of the Franchising Regulations for substantive content (items 4(1), 17, etc.) without reproducing that content","Incorporation of Corporations Act concepts ('Chapter 5 body corporate', 'insolvent under administration') by reference","Temporal conditions in section 7(2)(aa): different look-back periods for criminal convictions (10 years) vs civil judgments and insolvency (5 years)"],"plain_english_summary":"This instrument requires franchisors to submit extra, detailed information to the Department of Employment and Workplace Relations when providing disclosure documents, so government can monitor franchise systems, legal history, costs and contract terms. It affects franchisors (reporting), benefits prospective franchisees via improved oversight, and exempts very small or non‑expanding franchisors.\n\nThe register aims to reveal bad actors, spot industry problems early, and promote transparency."},"flash_summary":{"complexity_score":3,"scope_assessment":{"changed":true,"description":"This instrument expands the information franchisors must supply to the Secretary by listing additional data to accompany each disclosure document (sections 6–7). The change increases reporting scope and compliance burden on franchisors (who bear costs of compiling the data) while giving the Secretary broader monitoring and enforcement data; a narrow exemption for very small or non‑intending franchisors limits the expansion in those cases (section 6(2))."},"complexity_factors":["Cross-reference dependence on the Competition and Consumer (Industry Codes—Franchising) Regulations 2024 and Schedule 1 (external definitions and items referenced)","Relatively long checklist of specified information in section 7 requiring compilation for each disclosure document","Exclusions for personal information, particular franchisees or sites (section 7(1)) raise interpretation and redaction issues","Small‑franchisor exemption in section 6(2) introduces a factual threshold (fewer than 2 agreements or no intention) that requires verification","Use of legal-status terms (e.g. 'serious offence', 'insolvent under administration', 'Chapter 5 body corporate') ties compliance to other statutes and judicial definitions","Potential privacy and data‑handling responsibilities when supplying historical convictions, civil judgments or insolvency information"],"plain_english_summary":"Requires franchisors who give disclosure documents to prospective franchisees to provide the Secretary with specified additional information about each disclosure document (section 6), subject to an exemption for businesses with fewer than two franchise agreements or no intention to enter into franchise agreements. Required fields include system age, legal and insolvency history of franchisor/associates, counts and locations of similar businesses, supply restrictions, upfront payment handling, start‑up and ongoing costs, variation/renewal/restraint terms and dispute arbitration arrangements (section 7). Franchisors pay compliance costs; the Secretary collects data for monitoring and enforcement."}},"importantCases":[],"_links":{"self":"/api/acts/competition-and-consumer-industry-codes-franchising-additional-information-required-by-the-secretary","history":"/api/acts/competition-and-consumer-industry-codes-franchising-additional-information-required-by-the-secretary/history","analysis":"/api/acts/competition-and-consumer-industry-codes-franchising-additional-information-required-by-the-secretary/analysis","conflicts":"/api/acts/competition-and-consumer-industry-codes-franchising-additional-information-required-by-the-secretary/conflicts","importantCases":"/api/acts/competition-and-consumer-industry-codes-franchising-additional-information-required-by-the-secretary/important-cases","documents":"/api/acts/competition-and-consumer-industry-codes-franchising-additional-information-required-by-the-secretary/documents"}}